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BILL NUMBER:S1988A

TITLE OF BILL: An act to amend the public authorities law, in relation to the election by certain counties to withdraw from the metropolitan commuter transportation district; and in relation to permitting the county of Putnam to make such election

PURPOSE:

To provide Dutchess, Orange, Putnam and Rockland counties the option to withdraw from the metropolitan commuter transportation district.

SUMMARY OF PROVISIONS:

The bill amends section 1279-b of the public authorities law to include Putnam County among the counties that have the option to withdraw from the metropolitan commuter transportation district. The county seeking to withdraw shall provide the commissioner of transportation, and chairman of the authority and the other counties which have an option to withdraw, a resolution adopted by the county legislature providing notice of intent to withdraw and furnish a public transportation plan.

The "public transportation plan" shall include an agreement where the county shall be entitled to lease facilities and services comprising such rail transportation system at fair market value which provides for negotiations for withdrawal from the metropolitan commuter transportation district.

If no agreement is reached after sixty days from the commencement of such negotiations, either party may make application to a justice of the supreme court residing in the counties of Dutchess, Orange, Putnam and Rockland for an appointment of a special referee.

The special referee shall mediate negotiations for withdrawal for a period of no longer than sixty days. If after the sixty day period the parties are unable to reach an agreement, the special referee shall, within thirty days, recommend the terms of the withdrawal to the justice, who shall review the recommendations of the referee and the positions of the parties thereon and shall issue an order setting forth the terms of the withdrawal.

The authority shall make payment to the county that withdraws for the difference in the amount of services received from the authority and monies paid by the county to the authority, this payment shall be extrapolated over the previous five years from the date of withdrawal.

JUSTIFICATION:

At a time when local taxpayers are at the breaking point of trying to pay their ever increasing property taxes, the Metropolitan Transportation Authority (MTA) bill was chaptered into law on May 7, 2009, and imposed a plan that would raise taxes, fees and fares to bailout the MTA. The majority of the revenues ($1.5 billion) generated from this plan would come from a payroll tax among the counties served by the MTA.

Under the payroll tax, public, private and not-for-profit employers in the MTA region must contribute $0.34 on every $100 of payroll. Dutchess, Orange, Putnam and Rockland Counties will be forced to contribute over $60 million in a payroll tax and over $30 million in increase fees on licenses, permits and registrations.

According to figures provided by the MTA, county taxpayers in Dutchess, Orange, Rockland and Putnam already collectively contribute tens of millions of dollars to support the MTA for a service that is used regularly by a relatively small number of individuals.

To add insult to injury, each of these four counties is only permitted one-quarter vote which amounts to only one vote for Dutchess, Orange, Putnam and Rockland counties.

Under this bill, the counties of Dutchess, Orange, Putnam and Rockland would have the option to withdraw from the Metropolitan Commuter Transportation District by an agreed transportation plan, approved by the commissioner of transportation, or by negotiating in good faith any agreement after the public transportation plan prepared by any such county is approved by the commissioner of transportation.

Given the tremendous fiscal burden placed on these four counties to support a transit system that is not used by the vast majority of their residents, it is imperative that these counties have a mechanism to be released from the transportation district-which has long held them fiscal hostage.

LEGISLATIVE HISTORY:

2011-2012 - S.5278 - Referred to Transportation

LOCAL FISCAL IMPLICATIONS:

This bill would result in a cost savings to be determined after such county or counties reach an agreed upon public transportation plan.

EFFECTIVE DATE:

This act shall take effect immediately.

Text

STATE OF NEW YORK
________________________________________________________________________
1988--A
2013-2014 Regular Sessions
IN SENATE
(PREFILED)
January 9, 2013
___________

Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when
printed to be committed to the Committee on Transportation -- recom-
mitted to the Committee on Transportation in accordance with Senate
Rule 6, sec. 8 -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the public authorities law, in relation to the election
by certain counties to withdraw from the metropolitan commuter trans-
portation district; and in relation to permitting the county of Putnam
to make such election
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 1279-b of the public authorities law, as added by
chapter 669 of the laws of 1986, the opening paragraph of subdivision 1,
the opening paragraph of paragraph (a) of subdivision 1 and subdivisions
3 and 5 as amended by chapter 670 of the laws of 1986, is amended to
read as follows:
S 1279-b. Transition--election to withdraw from the metropolitan
commuter transportation district. 1. The counties of Dutchess, Orange,
PUTNAM and Rockland shall have an option to withdraw from the metropol-
itan commuter transportation district and have such withdrawal take
effect on either: (a) [January] APRIL first, [nineteen hundred eighty-
seven] TWO THOUSAND SIXTEEN. If any such county plans to withdraw from
the district on [January] APRIL first, [nineteen hundred eighty-seven]
TWO THOUSAND SIXTEEN, it shall (i) no later than seventy-five days after
the effective date of this section, furnish the commissioner of trans-
portation, and chairman of the authority and the other counties which
have an option to withdraw, a resolution adopted by the county legisla-
ture providing notice of intent to withdraw, (ii) on or before [October]
JANUARY first, [nineteen hundred eighty-six] TWO THOUSAND FIFTEEN,
furnish to the commissioner of transportation, the chairman of the

EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00391-02-4

S. 1988--A 2

authority and other counties which have an option to withdraw, a resol-
ution adopted by the county legislature providing for a public transpor-
tation plan. For the purposes of this section, a "public transportation
plan" shall mean a plan that maintains adequate and continuous public
transportation services from the withdrawing county to the city of New
York or any terminus previously served, provides a reasonable level of
rail passenger service, provides a schedule for implementing such
service, protects the public investment in the rail transportation
system and any other criteria deemed necessary by the commissioner of
transportation. SUCH PUBLIC TRANSPORTATION PLAN SHALL INCLUDE, BUT NOT
BE LIMITED TO, AN AGREEMENT BY WHICH SUCH COUNTY SHALL BE ENTITLED TO
LEASE THE FACILITIES AND SERVICES COMPRISING SUCH RAIL TRANSPORTATION
SYSTEM AT FAIR MARKET VALUE AND UNDER SUCH TERMS AND CONDITIONS TO BE
DETERMINED AS SET FORTH IN SUBDIVISION SIX OF THIS SECTION. Prior to
withdrawal pursuant to this paragraph or paragraph (b) of this subdivi-
sion, a county must receive approval of its public transportation plan
pursuant to paragraph (c) of this subdivision, (iii) on or before Decem-
ber fifteenth, [nineteen hundred eighty-six] TWO THOUSAND FIFTEEN,
furnish the commissioner of transportation, a copy of an agreement with
the authority or an operator of rail passenger service for the provision
of rail passenger service to and from such county and the city of New
York or any terminus previously served. IF SUCH AGREEMENT HAS NOT BEEN
CONCLUDED BY THE RESPECTIVE PARTIES, AND A PARTY HAS EXERCISED ITS
RIGHTS PURSUANT TO SUBDIVISION SIX OF THIS SECTION, THE APPROVAL OF THE
COMMISSIONER OF TRANSPORTATION SHALL NOT BE REQUIRED AND THE AGREEMENT
OR ORDER SET FORTH IN SUBDIVISION SIX OF THIS SECTION, SHALL DETERMINE
THE TERMS AND CONDITIONS OF SUCH WITHDRAWAL.
If a county planning to withdraw on [January] APRIL first, [nineteen
hundred eighty-seven] TWO THOUSAND SIXTEEN is unable to withdraw because
it could not meet the requirements of this paragraph, it may elect to
withdraw pursuant to paragraph (b) of this subdivision hereafter.
(b) January first, [nineteen hundred eighty-eight] TWO THOUSAND SEVEN-
TEEN or January first, [nineteen hundred eighty-nine] TWO THOUSAND EIGH-
TEEN. If any such county plans to withdraw on either January first,
[nineteen hundred eighty-eight] TWO THOUSAND SEVENTEEN or January first,
[nineteen hundred eighty-nine] TWO THOUSAND EIGHTEEN, it shall (i) no
later than ninety days after the first of January of the year immediate-
ly preceding the year in which such county plans to withdraw from the
district, furnish the commissioner of transportation, the chairman of
the authority and the other counties which have an option to withdraw, a
resolution adopted by the county legislature providing notice of intent
to withdraw from the district, (ii) no later than one hundred twenty
days after the first of January of the year immediately preceding the
year in which such county plans to withdraw from the district furnish to
the commissioner of transportation, the chairman of the authority and
the counties which have an option to withdraw a resolution adopted by
the county legislature providing a public transportation plan as
described in this section, (iii) on or before October first of the year
immediately preceding the year in which such county plans to withdraw
from the district, furnish to the commissioner a copy of an agreement
with the authority or an operator of rail passenger service for the
provision of rail passenger service to and from such county and the city
of New York or any terminus previously served. IF SUCH AGREEMENT HAS
NOT BEEN CONCLUDED BY THE RESPECTIVE PARTIES, AND A PARTY HAS EXERCISED
ITS RIGHTS PURSUANT TO SUBDIVISION SIX OF THIS SECTION, THE APPROVAL OF
THE COMMISSIONER OF TRANSPORTATION SHALL NOT BE REQUIRED AND THE AGREE-

S. 1988--A 3

MENT OR ORDER SET FORTH IN SUCH SUBDIVISION SIX SHALL DETERMINE THE
TERMS AND CONDITIONS OF SUCH WITHDRAWAL.
(c) No later than thirty days after receipt of the public transporta-
tion plan the commissioner of transportation shall, in writing, either
approve such plan as conforming with the requirements heretofore
described or disapprove such plan as failing to meet such requirements
and the reasons therefor. Disapproval of a plan shall not prohibit a
county from resubmitting a public transportation plan and such resubmit-
ted plan shall be approved or disapproved no later than fifteen days
after receipt by the commissioner of transportation. The public trans-
portation plan shall be subject to any state or federal public hearing
requirements which the authority would be subject to if the authority
made the changes proposed by such plan.
(d) Any such county which plans to withdraw from the district must
meet the requirements of this section prior to the effective date of
withdrawal, and no withdrawal for the purposes of this section shall
take effect unless such county furnishes the resolutions and agreement
prior to the effective date of withdrawal.
2. The authority and any subsidiary corporation of the authority shall
enter into an agreement or agreements with a county that plans to with-
draw from the district to transfer and assign to such county all author-
ity and subsidiary railroad facilities and operations, rights and obli-
gations, and contract rights and obligations, including operating
contract rights and obligations, which are owned, operated, maintained
or used directly or by contract or which are otherwise involved in the
provision of railroad services to such counties. Such agreement shall
provide, in the event a facility, operation, right or obligation is
necessary and material to the provision of rail passenger service in the
district or is not assignable under applicable bond covenants or
contracts or the parties agree that it should not be assigned, that the
authority or subsidiary thereof shall continue to hold and be responsi-
ble for such facility, operation, right or obligation and that such
county shall reimburse to the authority that portion of the cost to the
authority or subsidiary of its retention of such facility, operation,
right or obligation that is allocable [to] WITHIN such county. If the
parties agree that the authority or subsidiary thereof shall operate the
railroad facilities in a county after the effective date of such coun-
ty's withdrawal, the agreement also shall provide for the terms and
conditions of the operation of such service.
3. Within forty-five days of the effective date of this section, the
authority and any subsidiary corporation of the authority shall provide
to the counties of Dutchess, Orange, PUTNAM and Rockland a written
statement, including cost estimates and the useful life, if any, of all
of its facilities, operations, rights and obligations relating to the
provision of rail service in such counties.
4. The authority and any subsidiary corporation of the authority is
authorized to enter into an agreement or agreements with a county that
plans to withdraw from the district, pursuant to which the authority or
subsidiary thereof will provide technical assistance to such county
prior to, during and after the withdrawal, with respect to the transfer
of ownership, operation, maintenance and use of railroad facilities
within such county. Such agreement may provide that the county reimburse
the authority or its subsidiary for the cost to the authority and its
subsidiary for the provision of such technical assistance.
5. The authority shall have no obligation to undertake or continue any
project or part thereof in a current or future capital program plan

S. 1988--A 4

which pertains to railroad facilities within or services to a county
that withdraws from the district on or after such date of withdrawal nor
shall the authority enter into any contract for a project or part there-
of which would increase liabilities pursuant to subdivision [six] SIX-A
of this section in a county after such county notifies the authority of
its intent to withdraw as provided in subdivision one of this section,
provided, however, that if the authority has executed a contract for the
effectuation of a project or part thereof in a capital program plan in
such county, it shall be assigned to such county in accordance with
subdivision two of this section, unless the parties agree that it shall
not be assigned and that the authority or its subsidiary shall continue
to be responsible therefor, in which event the county shall reimburse
the authority or its subsidiary in accordance with the provisions of
subdivision two of this section.
6. SHOULD THE COUNTIES OF DUTCHESS, ORANGE, PUTNAM OR ROCKLAND SEEK TO
WITHDRAW FROM THE DISTRICT PURSUANT TO THIS SECTION, ANY SUCH COUNTY AND
THE AUTHORITY, AND/OR, IF APPROPRIATE ANY SUBSIDIARY CORPORATION OF THE
AUTHORITY SHALL NEGOTIATE IN GOOD FAITH ANY AGREEMENT REQUIRED BY THIS
SECTION FOR WITHDRAWAL FROM THE DISTRICT. SUCH NEGOTIATIONS SHALL
COMMENCE NOT LATER THAN FIFTEEN DAYS AFTER THE PUBLIC TRANSPORTATION
PLAN PREPARED BY ANY SUCH COUNTY HAS BEEN SUBMITTED BY SUCH COUNTY TO
THE AUTHORITY, AND/OR, IF APPROPRIATE, A SUBSIDIARY AUTHORITY. IN NO
EVENT SHALL A COUNTY BE REQUIRED TO NEGOTIATE WITH BOTH THE AUTHORITY
AND A SUBSIDIARY AUTHORITY. THE NEGOTIATIONS CONDUCTED BY AND THE
ACTIONS OF THE AUTHORITY OR SUBSIDIARY AUTHORITY SHALL BE BINDING. IF
AFTER SIXTY DAYS FROM THE COMMENCEMENT OF SUCH NEGOTIATIONS OR AT ANY
TIME THEREAFTER THE AUTHORITY OR ANY SUBSIDIARY CORPORATION OF THE
AUTHORITY AND A COUNTY ARE UNABLE TO REACH AN AGREEMENT REQUIRED BY THIS
SECTION FOR SUCH WITHDRAWAL, EITHER PARTY MAY MAKE APPLICATION TO A
JUSTICE OF THE SUPREME COURT PRESIDING IN THE COUNTIES OF DUTCHESS,
ORANGE, PUTNAM OR ROCKLAND FOR APPOINTMENT OF A SPECIAL REFEREE. EACH
PARTY SHALL SUBMIT TO THE JUSTICE A LIST CONTAINING THE NAMES AND QUALI-
FICATIONS OF FIVE PERSONS TO SERVE AS SPECIAL REFEREE. THE JUSTICE SHALL
SELECT ONE PERSON FROM AMONG THE NAMES SUBMITTED BY THE PARTIES TO SERVE
AS SPECIAL REFEREE. THE SPECIAL REFEREE SHALL MEDIATE THE NEGOTIATIONS
FOR WITHDRAWAL FOR A PERIOD OF NO LONGER THAN SIXTY DAYS. IF, AT THE END
OF SAID SIXTY DAY PERIOD, THE PARTIES ARE NOT ABLE TO REACH AGREEMENT,
THE SPECIAL REFEREE SHALL, WITHIN THIRTY DAYS THEREAFTER, RECOMMEND THE
TERMS OF THE WITHDRAWAL TO THE JUSTICE. THE JUSTICE SHALL REVIEW THE
RECOMMENDATIONS OF THE REFEREE AND THE POSITIONS OF THE PARTIES THEREON
AND SHALL ISSUE AN ORDER SETTING FORTH THE TERMS OF THE WITHDRAWAL.
NOTWITHSTANDING THE ENTRY OF SUCH ORDER, A COUNTY SHALL HAVE FIFTEEN
DAYS FROM THE ENTRY OF SUCH ORDER TO TERMINATE SUCH PROCEEDING. UPON THE
TIMELY EXERCISE OF SUCH RIGHT TO TERMINATE, SUCH PROCEEDING SHALL BE
DEEMED NULL AND VOID AND OF NO FURTHER EFFECT. IF A COUNTY HAS NOT EXER-
CISED ITS RIGHT TO TERMINATE, SAID ORDER SHALL BE SUBJECT TO APPELLATE
REVIEW IN ACCORDANCE WITH THE CIVIL PRACTICE LAW AND RULES, PROVIDED
THAT ANY APPEAL FROM THE ORDER SHALL BE GRANTED EXPEDITED STATUS.
6-A. Any county which withdraws from the district shall reimburse to
the authority or its subsidiary, within the time period agreed to by the
parties, any capital expenditures heretofore undertaken by the authority
or its subsidiary for railroad facilities only within such county which
were financed by commuter railroad revenue bonds issued by the metropol-
itan transportation authority pursuant to section twelve hundred sixty-
nine of this [article] TITLE and are assigned to such county in accord-
ance with the provisions of subdivision two of this section.

S. 1988--A 5

[7.] 6-B. The obligations of a county that withdraws from the district
to reimburse the authority and any subsidiary corporation of the author-
ity for the costs of operation, maintenance and use of passenger
stations pursuant to section twelve hundred seventy-seven of this [arti-
cle] TITLE, shall continue for any such costs incurred up to the effec-
tive date of the county's withdrawal from the district and for costs
incurred thereafter that result from acts preceding such withdrawal, and
the applicability of the payment provisions and procedures of such
section twelve hundred seventy-seven to such county shall continue ther-
eafter with respect to the aforesaid costs.
[8.] 7. In the event of a county's failure to make payment of any
monies determined by the authority to be owed and due it or any subsid-
iary corporation of the authority pursuant to the terms of any agreement
entered into pursuant to this section, the authority is authorized to
recover such payments in the same manner as in section twelve hundred
seventy-seven of this [article] TITLE and the state comptroller shall
withhold and pay monies to the authority in accordance with the proce-
dures set forth in that section.
8. THE AUTHORITY SHALL MAKE PAYMENT TO THE COUNTY THAT WITHDRAWS FOR
THE DIFFERENCE IN THE AMOUNT OF SERVICES RECEIVED FROM THE AUTHORITY AND
MONIES PAID BY THE COUNTY TO THE AUTHORITY, THIS PAYMENT SHALL BE
EXTRAPOLATED OVER THE PREVIOUS FIVE YEARS FROM THE DATE OF WITHDRAWAL.
IF THE AUTHORITY FAILS TO MAKE SUCH PAYMENT TO THE COUNTY, THE AMOUNT
OWED SHALL BE WITHHELD BY THE STATE COMPTROLLER FROM THE AUTHORITY AND
THE MONIES SHALL BE PAID TO THE COUNTY.
9. The term of office of any resident of a county that withdraws from
the district under this section, as a member of the board of the author-
ity, the Metro-North rail commuter council or the management advisory
board, which is based upon residence in such county, shall terminate
upon the county's withdrawal and the office shall be deemed vacant and
filled in the manner provided by law.
10. The provisions of this section and all agreements undertaken in
accordance herewith shall be subject to the rights of the holders of any
outstanding bonds or notes issued by the authority.
S 2. This act shall take effect immediately.

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